India’s palm oil imports in March increased from the previous month but remained below normal levels for the fourth consecutive month, as its premium over rival soyoil prompted refiners to boost soyoil purchases, according to five dealers.
Lower-than-normal palm oil imports by India, the world’s biggest buyer of vegetable oils, could pressure Malaysian palm oil prices and support U.S. soyoil futures.
Palm oil imports in March rose 13.2% to 423,000 metric tons month-on-month, according to estimates from dealers.
In early March, dealers had expected imports to surpass 500,000 tons for the month.
India imported an average of more than 750,000 tons of palm oil each month during the marketing year that ended in October 2024, said the Solvent Extractors’ Association of India, which is set to publish its March import data by mid April.
“Palm oil has been more expensive than soyoil for the past few months, and it’s reducing core demand,” said Rajesh Patel, managing partner at GGN Research, an edible oil trader.
Soyoil imports in March jumped 24% to 352,000 tons month-on-month, while sunflower oil imports fell 15.5% to 193,000 metric tons, the lowest in six months, dealers said.
Higher shipments of palm oil and soyoil lifted the country’s total edible oil imports in March to 968,000 tons, marking a 9.3% jump from the prior month, which saw imports fall to a four-year low, according to dealers’ estimates.
“Palm oil has been holding a premium over soyoil, even for shipments in April and May. That’s why palm oil imports in April will remain below 500,000 tons,” said Sandeep Bajoria, CEO of Sunvin Group, a vegetable oil brokerage.
Imports could begin to rise from May onward, with a significant increase anticipated from July onward, when palm oil becomes competitive with soyoil, Bajoria said.
India buys palm oil mainly from Indonesia and Malaysia, while it imports soyoil and sunflower oil from Argentina, Brazil, Russia and Ukraine.